European Central Bank holds key interest rates steady

Recent economic data has broadly confirmed its earlier projections. Domestic inflationary pressures are gradually easing, supported by a slowdown in wage growth. The eurozone economy has also shown resilience, bolstered by the effect of previous rate cuts, the Governing Council said in a statement.

However, policymakers cautioned that the global environment remains “exceptionally uncertain”, particularly due to ongoing trade disputes. The Governing Council reiterated its commitment to a data-driven, meeting-by-meeting approach and emphasised that no predetermined path for future interest rates is being set.

The ECB reaffirmed its determination to ensure inflation stabilises at the 2 per cent target over the medium term, with monetary policy decisions continuing to rely on economic and financial data, underlying inflation trends, and policy transmission dynamics.

ALCHEMPro News Desk (KD)